Pullman Chip Maker Challenges Patents

Tue., Sept. 30, 1997

By Bert Caldwell bertc@spokesman.com (509) 459-5450

Advanced Hardware Architectures Inc. is challenging the patents of a competitor that claims infringement by the Pullman company.

A complaint filed in U.S. District Court Friday alleges that patents held by Stac Inc. of San Diego since 1991 do nothing more than describe what was already known.

Stac designs and markets products that increase computer storage capacity and the speed at which information can be transmitted.

Advanced Hardware, founded in 1988, has developed datacompression chips for several years.

According to the complaint, Stac approached Advanced Hardware in January about a potential merger or buyout. Stac was given access to company books and other private information.

Stac officials, based on their review of the potential margins on Advanced Hardware products, backed away from a merger.

But in April, officials from Advanced Hardware discussed an agreement with a Stac subsidiary, HI/FN Inc., that would allow the company to license Stac’s patents, although they did not believe the patents were valid or could be infringed. Terms were negotiated, and Advanced Hardware began marketing the technology.

HI/FN renounced the pending license agreement last month.

Meanwhile, Advanced Hardware customers were advised that they would have to obtain a license from Stac if they intended to use the Pullman company’s technology.

Advanced Hardware’s circuitry, according to Stac, infringed on its patents.

Stac announced in August it would introduce a version of the data-compression chip, despite earlier claims by officials that they saw little profit in the business.

Advanced Hardware alleges Stac’s actions constitute unfair competition and interference with business relationships.

Neither Stac patent is valid, according to the complaint, which seeks damages and asks the court to block further efforts by the San Diego company to meddle in Advanced Hardware business.

, DataTimes

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Pullman Chip Maker Challenges Patents

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